2019 (11) TMI 1378 - HC - Income Tax

Revision u/s 263 - Whether Tribunal was right in holding that the order u/s. 154 passed by the AO on a debatable issue right in law - issue regarding the set-off of unabsorbed depreciation against deemed income being datable; whether the Tribunal was justified in concluding that rectification is lawful? -HELD THAT - Revenue in support of the Appeal states that questions of law have not been properly drafted. Therefore, he seeks time to re-draft the questions as giving rise to substantial questions of law. Amendment to be carried out within a period of one week from today. Amended copy of Appeal Memo to be served upon the Respondent immediately thereafter.

Summary

Issues involved:
1. Challenge to order of the Income Tax Appellate Tribunal for Assessment Year 2011-12.
2. Questions of law raised by the Revenue regarding the Commissioner's order under Section 263, the AO's order under Section 154, and the set-off of unabsorbed depreciation against deemed income.

Analysis:
1. The High Court of Bombay heard an appeal challenging the order dated 28th October, 2016, passed by the Income Tax Appellate Tribunal for Assessment Year 2011-12 under Section 260-A of the Income Tax Act, 1961. The main contention raised by the Revenue was whether the Tribunal was correct in holding that the Commissioner's order under Section 263 was erroneous and prejudicial to the revenue's interests. The Court noted that the questions of law presented by the Revenue needed proper drafting, and granted time for the questions to be re-drafted to ensure they give rise to substantial questions of law. An amendment to the Appeal Memo was directed to be carried out within one week, with the amended copy to be served to the Respondent promptly. The appeal was adjourned to 18th November, 2019.

2. The second issue raised by the Revenue pertained to the Tribunal's decision on the AO's order under Section 154 on a debatable legal issue. The Court did not delve into the specifics of this issue in the provided summary.

3. The third issue involved the Tribunal's decision on the set-off of unabsorbed depreciation against deemed income, with the question of whether the rectification was lawful. The Court did not provide a detailed analysis of this issue in the summary but acknowledged its relevance in the appeal.

In conclusion, the High Court of Bombay considered the various questions of law raised by the Revenue challenging the Tribunal's orders under different sections of the Income Tax Act for Assessment Year 2011-12. The Court emphasized the need for proper drafting of the questions to ensure they raise substantial legal issues and granted time for such amendments to be made before proceeding with the appeal hearing.